Dell chasing HPE, Cisco, Microsoft in cloud market

14/09/2016

Dell Technologies is chasing HPE, Cisco and Microsoft for leadership in the private cloud hardware, public cloud hardware and cloud infrastructure software markets.

While the Dell EMC merger didn’t officially close until September, Dell and EMC in aggregate would have been ranked second in private cloud hardware and third in public cloud hardware based on Q2 2016 revenues, said Synergy Research Group.

Across all cloud hardware, HPE had the lead with 15 percent, closely followed by Cisco on 14 percent and Dell EMC 13 percent.

Other major cloud infrastructure vendors included IBM, Lenovo, Huawei, Oracle and NetApp.

Synergy Research Group said the growth rate for the total cloud infrastructure market dropped off a little in the quarter but on a rolling annualized basis it still grew by over 16 percent.

For the last nine quarters total spend on data center infrastructure — which includes servers, server OS, storage, networking, network security and virtualization software — has been running at an average $29 billion, with the market being increasingly driven by the cloud.

Cloud deployments or shipments of systems that are cloud enabled now account for well over half of the total data center infrastructure market.

“While spending on data center infrastructure remains relatively flat, cloud share of that spending continues to rise as an ever-increasing portion of computer workloads migrate to either public or private clouds,” said Jeremy Duke, founder and chief analyst at Synergy Research Group.

The report said within the cloud infrastructure market, hyperscale cloud operators are accounting for an ever-larger share of overall Capex (capital expenditure).